Many brokers believe that arranging commercial property insurance is actually very straightforward and after all, isn't it like arranging an 'off the peg' home insurance policy, except with business use? If you aleady have a policy with a company like this, are you perhaps a little tired of speaking to a call centre full of 'junior account executives', each of whom has to refer to their supervisor for the simplest of queries?

"Computer says 'No'....?"

Unfortunately, whilst the mechanics of arranging 'standard' cover may be easy enough, there are potenially a large number of issues upon which only a true insurance professional will be able to not only offer worthwhile advice but also anticipate issues you may not have even considered. Try asking your current provider:

1. I know that £5,000,000 public liability cover is more expensive that £2,000,000, but why should I pay the extra?
   • Public liability claims anywhere near even the most basic £1,000,000 are extremely rare, whilst the usual trips and falls are almost always settled for 5 figure sums or less. The higher indemnity limits become worthwhile when your property can hold many individuals and a single incident, say a fire, could cause injuries to large numbers. Large department stores, office blocks and shopping centres are likely to require even more cover than the typical £5,000,000 maximum available under a standard policy.
2. When do I need employer's lliability cover?
   • Employment law is a complex issue and you can been deemed to be the employer in a wide range of circumstances, even when you thought you were contracting out services to an independent company. Window cleaners? Probably not. Caretaker or domestic cleaner? Possibly yes. The answer depends on a number of conditions and how they are paid is only one of them.
3. Why would I need 36 months loss of rent cover, and not just 12?
   • Loss of rent cover only applies when an insured peril has been in operation. i.e. a fire, storm, flood etc., and not if the tenant just decides to leave. (Rent guarantee cover is different.). If your property is of large or unusual construction, or perhaps in a conservation area with complex planning issues etc., it may take a long time to rebuild, perhaps more than the 12 monhs.
4. So; I've opted for 'all risks' cover with property owners liability and loss of rent. What else could i need?
   • Extentions for: terrorism, legionella liability, statutory engineering inspections for lifts, boilers & air conditioning, enterprise zones, privity of contract, garden squares, trace and access, day 1 inflation protection, contract works, directors and officer's liability, legal expenses, etc.
5. How can I reduce my insurance costs?
   • If your lease enables you to pass on the cost of the property insurance to your tenant then you have two important considerations:
     1. Why should I skimp on cover when someone else pays the bill? Why indeed. Check your lease has this condition and the wording of the relevant section. Typically it specifies only that a reasonable market premium is obtained and not the scope of cover provided.
     2. Are you incurring credit charges whilst waiting for your tenants to pay for the insurance, together with the administrative burden and time spent negotiating cover? Professional property owners typically demand a share in the broker's commission to cover these costs - are you receiving yours?
6. Why must I wait several weeks for my policy documentation? I need to urgently send copies to my finance providers.
   • We can turnaround 95% of individual property quotations within 1 hour. Cover confirmation can be faxed to solicitors or mortgage providers the same day cover is requested. Policy documents are often prepared within 24 hours and can be emailed if required.